All Forum Posts by: Huyen Nguyen

Thank you for the info. Someone on another site said it has to be 15% for MFH even if one unit is owner-occupied. But that must not be a lender speaking. 

@Upen Patel Is it true that bank-originated mortgages only allow 5% down on an owner-occupied for SFR, but require 15% down on owner-occupied multi-fam?

So even if I move into a unit, I guess I still need to put down 15% unless I choose to do FHA 3.5% down (which seems to allow 3.5% dwn for small 2-4 units multi-fam)

Thank you for your knowledge. 

They are separate buildings with separate parcels. I was just hoping that being sold by the same owner, the bank might consider giving me a loan for both, since they are side by side and I would be able to manage them myself easily. 

There are 2 duplexes for sale by the same owner (2 buildings side by side) and I'm looking to move in one unit and rent out the other 3. Does anyone know if it's possible to purchase both on a single owner-occupied (5% down) residential mortgage? 

@Brian Gibbons That's a very educational post and I had no idea about it but it makes a lot of sense. Thank you for explaining in details to a newbie.

Just to pick your brain a bit further, have you done any of these deals? How much are the quiet costs usually (the work to get it subject-2 or note with no payments, profit JV agreement - do you usually need a lawyer?).

The reason I'm asking is there is a small condo (under 900 sq ft) that fits the exact situation, I'm not sure of the condition but I think there might be a small margin to gain (5k or less) and so I don't know if the quiet costs will eat into everything very quickly. But it's so interesting to learn all these different techniques in acquiring a deal.

Thanks Brian!

 Do you mind explain a Joint-Venture with the seller, and what it means by seller carrying a single payment note until resale?

Am I understanding it correctly that the seller takes some of the resale profit? And does the title never transfer to you but directly to the final purchaser?

Thanks in advance!

That's interesting, I've just now read that on the page you quoted. 

Anyhow, here's the page to search for how much the tax history and breakdown for the property http://tpti.hamiltontn.gov/AppFolder/Trustee_PropertySearch.aspx and I did a test search for a duplex and the Property Type for it is listed as "Rental Property 40%, e.g. Apartment" so it seems like you will be paying tax on 40% of the appraised value

Thanks for your responses, I drove by it and wasn't sure about the neighborhood so I'll pass on that property. The neighborhood is primarily rentals and doesn't look well-kept

Have the same question, we currently live in one and if we rent it out, we will probably set out only 2% a month, since all exteriors are taken care of by HOA (roof, carport, siding), wondering if any condo investors would say that's too low and why.

We live in Chattanooga TN but after months of researching, I realize that for the same price, multi-families in the south of Atlanta, GA area have more sqft, can rent for more, with lower property taxes. Here's a triplex that we found that is quite close to the international airport, located in College Park, GA, that is selling for 153k. They're townhome style, so each unit can be bought/sold separately, with separate tax codes.

Here are the stats:

• 3 units, 3 beds, 2.5 baths each
• Built in 1984
• All currently rented (don't have actual rent amount, but I asked a property manager in the area, who said she can rent it for 795 - 800 a month each)
• Gross Rent: $2385 (795 * 3)

The numbers:

• Monthly Total Operating Expense: $1050 ( 5% vacancy, 5% repairs & maintenance, 5% cap ex, lawn care, 150$ insurance --guesstimate, 10% property mgmt)
• P&I: $620 (20% down ($30,600), 4.5% interest, 30 yrs)
• Estimate $1000 in repairs (we haven't seen the inside), total investment including closing cost comes to $36,190
• NOI $16,123
• Cash Flow $8,681
• Cash ROI 24%
• Cap Rate 10.54%
• Gross Rent Multiplier: 5
• Monthly Cash Flow per Unit: $241

After all the learning I've done with the help of BiggerPockets, I want to make sure my numbers make sense and I'm not missing anything major. Please point out mistakes that I have in this calculation, since I currently view this as a great opportunity and it could be a bad idea in the eyes of seasoned investors. 

If anyone lives/works near the area and would not recommend this area, please also let me know why. I understand that knowing an area is important and I don't personally know the area well. 

Thanks for your time and wish everyone a successful investing journey!